You can also find out more about the following: U.S. Securities and Exchange Commission Danh C. Vo is the founder and CEO at VBit Technologies Corp. of the bitcoin mining company. He has been charged with fraud of up to $48.5 Million.
The SEC has stated that Vo misused He used the money to gamble, buy cryptocurrency and give gifts to family while lying about his company’s operation.
In the complaint filed before the U.S. District Court for the District of Delaware it is alleged that Vo collected over $95.6 millions from around 6,400 investors in the period between December 2018 to February 2022.
He bought “hosting agreements,” This investment option promised investors a percentage of profit from the bitcoin mining rigs that VBit operated. The majority of customers selected this option as opposed to purchasing their own rigs.
The Voter’s Guide misrepresented How many actual mining rigs are operational?
“While some investors received returns, others suffered substantial losses,” The complaint said. Vo was either reckless or ignorant in his failure to realize that the host company would not be able to meet its obligations.
Vo.37 exercised full authority over VBit and its materials including website, investor information, promotional material, etc.
SEC claims that hosting agreements are securities as investors depended on Vo’s and VBit to make profits.
SEC: family members receive misappropriated funds
According to the Commission, Vo also allegedly sent $5 million in family transfers to members such as his mother, ex-wife sister and brother. The remaining funds were allegedly transferred to him by his ex-wife, mother, brother and sister after their divorce.
According to the SEC, several family members have been named in the suit as relief defendants and they consented, subject to court approval, disgorgement of the money received.
VBit, acquired in 2022 by Advanced Mining Group, is no longer active. This action is seeking disgorgement and civil penalties for ill-gotten profits, as well as a prohibition on Vo participating in any future security offerings.
Congress is also suing the plaintiffs. debates federal measures A bipartisan proposal to combat cryptocurrency fraud A bipartisan proposal would create A dedicated taskforce to detect and combat fraud in the sector of digital assets.
SEC wants Vo’s alleged behavior to serve as a reminder for investors that they should evaluate carefully claims of passive crypto income and verify that the operations are transparent.
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Source: bitcoinmagazine.com
